Baobab raises $4.2 million

Baobab, a Berlin-based cyber insurance MGA, has secured $4.2 million in pre-seed funding. The round was led by Project A Ventures with participation from La Famiglia, Discovery Ventures and several angel investors such as Christopher Oster and Marco Adelt (Clark), Michael Riegel (Comtravo), Hanno Fichtner (Gabi), Emilios Markou and Alexis Pantazis (Hellas Direct), Philippe Mota and Jan Beckers (Bit Capital & Ioniq).

Founded in 2021 by Gabi co-founder Vincenz Klemm and former CTO of Luko Insurance AG (Coya) Anton Foth, Baobab is set to launch in Germany with a cyber insurance offering for European SMEs that includes “active risk reduction.” Coverage can be bought online or through brokers.

“Losses from cybercrime are projected to hit $6 trillion globally in 2021, up 100% from 5 years ago. Evaluating the risks posed to a company’s system is the biggest challenge for any SMEs. That’s why Baobab not only insures SMEs against cyber risks but at the same time provides protection and monitoring against attacks. Our incentives are aligned with the customers as our insurance has to pay out if our risk mitigation does not work. We want to empower insurance brokers to be better able to advise their clients on their individual risk exposure so that companies are not left alone with cryptic vulnerability codes, but instead are provided with actionable remediations to enhance their cyber security posture.” – Vincenz Klemm, co-founder of Baobab.